Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

Attracting and retaining the highest value customers is important, but accurately calculating CLTV is trickier than it may seem. A customer’s lifetime value is more important for an organization than ...

Exceed customer expectations. Delight the customer. The customer is always right. We're a customer-driven organization. Each of those platitudes can destroy a brand. How? Customers cost money to ...

Which customers make the biggest contribution to your bottom line, and which generate a negative return? Do your promotions target volume without profitability? How do you decide what to charge a ...

Profits are derived from customers via sales and distribution channels. But few organizations validly report profit and loss statements for each customer. What explains this? First, let’s step back to ...

A company's total weekly gross profit is determined by calculating the cost of goods sold or services and subtracting the company's total revenue. Evaluating a company's weekly gross profit is a ...

Profit is a key indicator of a company’s long-term viability and success. Understanding your small business’s profitability can help with cost-cutting, pricing, and investment decisions. Here’s ...

Profit margin conveys the relative profitability of a firm or business activity by accounting for the costs involved in producing and selling goods. Margins can be computed from gross profit, ...

Understanding profit and profit margins is critical for business owners and corporate decision makers to reach their ultimate goal – earn the money they need to be successful and grow their company.